In a social media post, Bill Morgan, a leading pro-XRP advocate, reiterated allegations of biased regulatory practices by the Securities and Exchange Commission (SEC), accusing them of Undue favoritism towards Ethereum to the detriment of XRP. This claim aligns with a broader accusation involving former SEC official William Hinman, which is now culminating in formal complaints from the Conservative Political Action Conference (CPAC).
Morgan’s fiery comment surfaced on X, where he expressed his frustrations with “ETH Gate» with a touch of sarcasm: “But this is just a big conspiracy from the XRP community. That’s a good summary and that’s without even taking into account that the SEC began investigating Ripple, at a time when XRP was number three in market cap behind Ethereum, in April 2018 as the draft of the Hinman speech was being developed by dozens. SEC staff and attorneys. How corrupt can a regulator be.
The XRP Army is supported by CPAC
His statement comes after legal and ethical scrutiny of former Securities and Exchange Commission (SEC) official William Hinman intensified, with the Conservative Political Action Conference (CPAC) Foundation leading the charge. Through its Center for Regulatory Freedom, CPAC filed formal complaints with the New York and California bar associations, alleging unethical behavior and potential conflicts of interest during Hinman’s tenure at the SEC.
The allegations stem from Hinman’s pivotal 2018 speech, in which he clarified the regulatory status of Ethereum (ETH), suggesting that it should not be classified as a security, a decision that had far-reaching implications across the cryptocurrency landscape. cryptocurrencies.
Last week, the director of the CPAC Foundation’s Center for Regulatory Freedom, Andrew Langer, filed complaints of unethical professional behavior with the New York and California bars against the former Securities and Exchange chief and Exchange Commission, William Hinman.
Evidence… pic.twitter.com/NUop4tJO8h
-CPAC (@CPAC) May 28, 2024
Andrew Langer, director of the CPAC Foundation’s Center for Regulatory Freedom, said in the complaint: “Mr. Hinman’s affiliations and actions while serving in a high-ranking position at the SEC raise serious ethical questions that warrant a thorough investigation by the respective bars.
William Hinman’s professional background and associations are at the heart of the controversy. After leaving his position as an associate at Simpson Thacher & Bartlett (STB), a firm known for its financial services and involvement in the blockchain industry, Hinman was named director of the SEC’s Corporation Finance Division in May 2017.
In particular, in June 2018, Hinman gave a speech which effectively differentiated Ethereum from securities, relieving it of strict regulatory scrutiny applicable to securities transactions.
This speech coincided with Simpson Thacher’s involvement in the Enterprise Ethereum Alliance (EEA), an organization focused on promoting the use of Ethereum across various industries. CPAC’s complaint emphasizes the potential conflict of interest, noting that Hinman’s former company stood to gain from Ethereum’s strengthened market position, which was arguably influenced by the regulatory guidance of Hinman.
CPAC’s complaint is based largely on a series of SEC Emails and external communications, which include dialogues with Ethereum co-founder Vitalik Buterin before Hinman’s 2018 speech. These documents were uncovered during the extensive discovery process in the company’s ongoing trial. SEC vs. Ripple Labs. Ripple, whose XRP token was classified by the SEC as a security in a lawsuit in late 2020, has arguably faced harsher regulatory treatment than Ethereum, a point of contention highlighted by critics like Pro Lawyer -XRP Bill Morgan.
At press time, XRP was trading at $0.52907.
Featured image from Shutterstock, chart from TradingView.com
